BNS vs. RY, TD, BMO, CM, NA, BN, MFC, IFC, GWO, and SLF
Should you be buying Bank of Nova Scotia stock or one of its competitors? The main competitors of Bank of Nova Scotia include Royal Bank of Canada (RY), Toronto-Dominion Bank (TD), Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CM), National Bank of Canada (NA), Brookfield (BN), Manulife Financial (MFC), Intact Financial (IFC), Great-West Lifeco (GWO), and Sun Life Financial (SLF). These companies are all part of the "financial services" sector.
Bank of Nova Scotia (TSE:BNS) and Royal Bank of Canada (TSE:RY) are both large-cap financial services companies, but which is the superior stock? We will contrast the two companies based on the strength of their media sentiment, dividends, community ranking, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Bank of Nova Scotia presently has a consensus target price of C$67.74, indicating a potential upside of 4.99%. Royal Bank of Canada has a consensus target price of C$143.38, indicating a potential downside of 3.76%. Given Bank of Nova Scotia's higher possible upside, equities research analysts clearly believe Bank of Nova Scotia is more favorable than Royal Bank of Canada.
Royal Bank of Canada has higher revenue and earnings than Bank of Nova Scotia. Bank of Nova Scotia is trading at a lower price-to-earnings ratio than Royal Bank of Canada, indicating that it is currently the more affordable of the two stocks.
Royal Bank of Canada has a net margin of 28.61% compared to Bank of Nova Scotia's net margin of 26.41%. Royal Bank of Canada's return on equity of 13.66% beat Bank of Nova Scotia's return on equity.
51.0% of Bank of Nova Scotia shares are held by institutional investors. Comparatively, 51.9% of Royal Bank of Canada shares are held by institutional investors. 0.0% of Bank of Nova Scotia shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
In the previous week, Bank of Nova Scotia had 25 more articles in the media than Royal Bank of Canada. MarketBeat recorded 43 mentions for Bank of Nova Scotia and 18 mentions for Royal Bank of Canada. Royal Bank of Canada's average media sentiment score of 0.89 beat Bank of Nova Scotia's score of 0.05 indicating that Royal Bank of Canada is being referred to more favorably in the news media.
Royal Bank of Canada received 265 more outperform votes than Bank of Nova Scotia when rated by MarketBeat users. Likewise, 59.30% of users gave Royal Bank of Canada an outperform vote while only 54.78% of users gave Bank of Nova Scotia an outperform vote.
Bank of Nova Scotia has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.
Bank of Nova Scotia pays an annual dividend of C$4.24 per share and has a dividend yield of 6.6%. Royal Bank of Canada pays an annual dividend of C$5.52 per share and has a dividend yield of 3.7%. Bank of Nova Scotia pays out 70.0% of its earnings in the form of a dividend. Royal Bank of Canada pays out 51.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
Royal Bank of Canada beats Bank of Nova Scotia on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BNS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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